If the Nominal Wage Rises from €10 Per Hour in Period

question 17

Multiple Choice

If the nominal wage rises from €10 per hour in period one to €15 per hour in period 2 as the expected price level rises from 1 to 3 while the actual price level rises from 4 to 5, then from period 1 to period 2:

• A)the nominal wage is rising.
• B)the expected real wage is rising.
• C)the actual real wage is falling.
• D)all of the above.

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Definitions:

Brachialis

A muscle located in the upper arm that is primarily responsible for flexing the elbow.

Teres Major

A muscle of the upper limb that assists in the rotation and adduction of the arm.

Teres Minor

A small muscle of the rotator cuff that assists in rotating the arm laterally and stabilizing the shoulder joint.

Lateral Rotation

The outward rotation of a limb or organ away from the midline of the body.